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Dec 31, 2024
Semrush Q4 2024 Earnings Report
Semrush reported strong fourth quarter and full year 2024 financial results, with significant revenue growth and improved profitability, and announced a CEO transition.
Key Takeaways
Semrush Holdings, Inc. announced robust financial results for the fourth quarter and full year ended December 31, 2024, with Q4 revenue up 23% year-over-year to $102.6 million and full year revenue up 22% to $376.8 million. The company also reported a significant increase in non-GAAP operating income and free cash flow, alongside a leadership transition with William R. Wagner named as the new CEO and co-founder Oleg Shchegolev transitioning to CTO.
Fourth quarter revenue increased by 23% year-over-year to $102.6 million.
Non-GAAP income from operations for Q4 was $11.8 million, up from $8.3 million in the prior year period.
Achieved an Annual Recurring Revenue (ARR) of $411.6 million, representing a 22% year-over-year increase.
William R. Wagner was appointed as the new CEO, effective March 10, 2025, with co-founder Oleg Shchegolev transitioning to Chief Technology Officer.
Semrush
Semrush
Forward Guidance
Semrush provided optimistic financial guidance for the first quarter and full year 2025, anticipating continued revenue growth and stable non-GAAP operating margins.
Positive Outlook
- Expected Q1 2025 revenue in the range of $103.9 million to $104.7 million, representing approximately 22% year-over-year growth at the mid-point.
- Expected full year 2025 revenue in the range of $448 million to $453 million, representing approximately 20% year-over-year growth at the mid-point.
- Expected first quarter non-GAAP operating margin to be approximately 11%.
- Expected full year non-GAAP operating margin to be approximately 12%.
- Expected full year free cash flow margin to be approximately 12%.
Challenges Ahead
- Reconciliations of non-GAAP operating margin and free cash flow margin guidance to GAAP measures are not available without unreasonable efforts due to high variability and complexity.
- The variability of excluded charges, such as share-based compensation expense and employer taxes, is expected to have a significant and potentially unpredictable impact on future GAAP financial results.
- Future hiring, turnover, and retention needs directly impact employer taxes and tax deductions specific to equity compensation awards, contributing to unpredictability.
- The company disclaims any obligation to update forward-looking statements, except as required by law.
- Forward-looking statements are subject to substantial risks and uncertainties, as detailed in SEC filings.